Asahi Noguchi, board member of the Bank of Japan (BoJ)declared on Thursday that the “Main scenario is that future rate hikes are likely to be slow, but that depends on economic data“
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Cost-driven inflation and policy adjustment will be taken into account if rising wages translate into rising prices.
The positive cycle will take a long time to take root.
Increases the probability of reaching the 2% inflation target in about 2 years.
Some large companies are benefiting from the weakness of the Yen.
A prolonged weakness of the Yen could have various repercussions, including on wages and prices.
These factors will have to be taken into account when deciding monetary policy.
The BoJ will cautiously monitor the probability of reaching trend inflation of 2%.
I can't say if there will be another rate hike this year.
The unexpected strength of the US economy is one of the reasons for the weakness of the Yen.
It is natural for the BoJ to respond if wage rises and labor shortages intensify and increase pressure on prices.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
